Australia throws good money after bad propping up local oil refineries

Canberra should know by now that "fuel security" is a mirage

Avatar
20210525 Scott Morrison.jpg

Scott Morrison's assertion that the aid package will secure a "boost to Australia's long-term fuel security by locking in the future" of its refining sector seems less plausible. © AP

Vandana Hari is founder of Singapore-based Vanda Insights, which tracks energy markets.

The Australian government's recent decision to fork out $1.8 billion to keep the country's last two refineries running for another decade is a surprisingly regressive step for a free-market economy. It could also send the wrong signal to the world of private enterprise, which thrives on creative destruction.

Sponsored Content

About Sponsored ContentThis content was commissioned by Nikkei's Global Business Bureau.